Central Bank of Iran in Control
* Stressing on the active role the Central Bank of Iran plays in ensuring the foreign exchange market stability in the long run, the CBI governor stated international developments and seasonal events in the country among the several factors contributing to the recent and short-time rise in foreign exchange rates and assured people that this body is serious in preventing any sudden shock and volatility in the country; the US dollar crossed its 40,000 rial psychological threshold in the past week.
* Out of three Iranian banks of Bank Pasargad, Bank Saman and Bank Parsian applying for opening a branch in India, the former’s request is in the final stage of approval; as the India’s ambassador to Iran has said, it will be opened in Mumbai. He also referred to an upcoming visit by a business delegation from India’s Chamber of Commerce and Industry along with officials from India’s banking sector in 2 weeks aimed at exploring avenues to expand and bolster economic ties between the two countries.
In the Market
Despite concerns over the negative reaction of the market to US president speech, not only it did not cause any sales pressure in the stock market, the US dollar price also stopped its ascending trend. The All-Share Index also went up more than 500 points to stand at 85,200.
As the result of today’s meeting between officials from the Ministry of Economic Affairs and Finance and the Securities & Exchange Organization of Iran and CEOs of major banks aimed at supporting the capital market, it was decided that major banks’ fixed-income funds continue to allocate 5% of their resources to buying shares along with banks increasing their share in the market development fund.
Used to act as the market leader by many experts, tickers in the Automotive space started strong and managed to keep their gains through the closing bell. Excluding the Khavar Spring Mfg. Company which finished with a sell queue, others settled with good gains.
With oil prices hitting their 2-week high, the whole Oil Products space settled with moderate gains, except from Iranol Oil losing nearly 0.5%.
Global commodity, mostly metals, prices roaring was a focal point on today’s session. The Metals sector finished at the top of the day’s leaderboard with Shahid Bahonar Copper and Kimia-ye Zanjan Gostaran Zinc facing buy queues. Besides, an official in the Esfahan Steel Company (1.13%) announced the 89% rise in H1 export compared to the same period last year.
Such a positive atmosphere also dominated the Iron Ore group led by Gol-e Gohar Mining & Industrial (1.34%). Chadormalu Mining & Industrial was the top gainer ending in the 4.16% area.
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